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Legal alert no. 66

Amendments to the Portuguese Tax Incentives Statute – Law no. 43/2018, of August 9th

The Portuguese Tax Incentives Statute was recently amended by Law no. 43/2018, published, in the Official Gazette of the Republic of Portugal, on August 9th.

In general terms, this amendment will temporarily extend the validity of certain tax incentives, as well as revoke others.

Thus, the validity of the following tax incentives will be extended until December 31st 2019, without any amendments being made to its regime:

Foreign loans and income received from the leasing of imported equipment;

Stamp duty exemption regarding financial transactions for the acquisition of ships, containers and additional ship equipment, hired by shipping companies of the national merchant navy;

Regional wine comissions;

Managing entities of integrated systems for the management of waste streams;

Sporting, cultural and recreational associations;

Deductions to taxable income regarding personal income tax;

VAT taxation over free of charge transaction of goods and provision of services.

The validity of the following tax incentives is also extended until December 31st 2019, with amendments to its regime:

Saving accounts for retired persons;

Financial services of public entities;

Swaps and loans of non-resident financial institutions;

Deposits of non-resident financial institutions.

The tax incentive which establishes that, with regards to shipping companies of the national merchant navy, the taxation of maritime transport activity is applied over 30% of the profit of this activity, is extended until the entry into force of the special regime of determination of the taxable amount based on the tonnage of the ships and of the specific tax and contributory regime for the activity of maritime transport.

Additionally, the validity of the following tax incentives is revoked with effects from July 1st 2018:

Job creation;

Saving scheme with shares.

Lastly, the validity of the following tax incentives will be revoked with effects from January 1st 2019:

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